CELESTICA INC (CLS) Stock Fundamental Analysis
USA - NYSE:CLS - CA15101Q2071 - Common Stock
247.66 USD
-6.73 (-2.65%)
249.5 USD
+1.84 (+0.74%)
CLS gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 125 industry peers in the Electronic Equipment, Instruments & Components industry. CLS scores excellent points on both the profitability and health parts. This is a solid base for a good stock. CLS is valued quite expensive, but it does show an excellent growth. These ratings would make CLS suitable for growth and quality investing!
1. Profitability
1.1 Basic Checks
CLS had positive earnings in the past year.
CLS had a positive operating cash flow in the past year.
CLS had positive earnings in each of the past 5 years.
In the past 5 years CLS always reported a positive cash flow from operatings.
1.2 Ratios
CLS has a better Return On Assets (8.63%) than 89.60% of its industry peers.
CLS has a Return On Equity of 30.63%. This is amongst the best in the industry. CLS outperforms 93.60% of its industry peers.
CLS has a better Return On Invested Capital (19.07%) than 93.60% of its industry peers.
CLS had an Average Return On Invested Capital over the past 3 years of 11.43%. This is in line with the industry average of 9.48%.
The 3 year average ROIC (11.43%) for CLS is below the current ROIC(19.07%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.63% | ||
| ROE | 30.63% | ||
| ROIC | 19.07% |
ROA(3y)4.63%
ROA(5y)3.55%
ROE(3y)15.02%
ROE(5y)11.3%
ROIC(3y)11.43%
ROIC(5y)8.93%
1.3 Margins
The Profit Margin of CLS (5.09%) is better than 69.60% of its industry peers.
In the last couple of years the Profit Margin of CLS has grown nicely.
With a decent Operating Margin value of 6.56%, CLS is doing good in the industry, outperforming 68.80% of the companies in the same industry.
In the last couple of years the Operating Margin of CLS has grown nicely.
The Gross Margin of CLS (11.36%) is worse than 76.80% of its industry peers.
In the last couple of years the Gross Margin of CLS has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.56% | ||
| PM (TTM) | 5.09% | ||
| GM | 11.36% |
OM growth 3Y24.27%
OM growth 5Y29.03%
PM growth 3Y34%
PM growth 5Y30.13%
GM growth 3Y8.03%
GM growth 5Y10.39%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so CLS is creating value.
CLS has less shares outstanding than it did 1 year ago.
CLS has less shares outstanding than it did 5 years ago.
The debt/assets ratio for CLS is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 6.23 indicates that CLS is not in any danger for bankruptcy at the moment.
CLS has a Altman-Z score of 6.23. This is amongst the best in the industry. CLS outperforms 83.20% of its industry peers.
The Debt to FCF ratio of CLS is 2.27, which is a good value as it means it would take CLS, 2.27 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.27, CLS is in the better half of the industry, outperforming 76.00% of the companies in the same industry.
CLS has a Debt/Equity ratio of 0.48. This is a healthy value indicating a solid balance between debt and equity.
CLS has a Debt to Equity ratio of 0.48. This is in the lower half of the industry: CLS underperforms 68.80% of its industry peers.
Even though the debt/equity ratio score it not favorable for CLS, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | 2.27 | ||
| Altman-Z | 6.23 |
ROIC/WACC2.18
WACC8.76%
2.3 Liquidity
CLS has a Current Ratio of 1.44. This is a normal value and indicates that CLS is financially healthy and should not expect problems in meeting its short term obligations.
CLS has a Current ratio of 1.44. This is in the lower half of the industry: CLS underperforms 76.80% of its industry peers.
CLS has a Quick Ratio of 1.44. This is a bad value and indicates that CLS is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.86, CLS is not doing good in the industry: 84.00% of the companies in the same industry are doing better.
The current and quick ratio evaluation for CLS is rather negative, while it does have excellent solvency and profitability. These ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.44 | ||
| Quick Ratio | 0.86 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 49.06% over the past year.
CLS shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 48.11% yearly.
The Revenue has grown by 20.52% in the past year. This is a very strong growth!
The Revenue has been growing by 10.38% on average over the past years. This is quite good.
EPS 1Y (TTM)49.06%
EPS 3Y44.1%
EPS 5Y48.11%
EPS Q2Q%52.75%
Revenue 1Y (TTM)20.52%
Revenue growth 3Y19.63%
Revenue growth 5Y10.38%
Sales Q2Q%20.97%
3.2 Future
CLS is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 30.31% yearly.
The Revenue is expected to grow by 18.86% on average over the next years. This is quite good.
EPS Next Y41.57%
EPS Next 2Y29.94%
EPS Next 3Y26.3%
EPS Next 5Y30.31%
Revenue Next Year19.55%
Revenue Next 2Y18.38%
Revenue Next 3Y18.53%
Revenue Next 5Y18.86%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
CLS is valuated quite expensively with a Price/Earnings ratio of 52.25.
CLS's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 27.20. CLS is valued rather expensively when compared to this.
CLS is valuated quite expensively with a Price/Forward Earnings ratio of 37.42.
CLS's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of CLS to the average of the S&P500 Index (22.70), we can say CLS is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 52.25 | ||
| Fwd PE | 37.42 |
4.2 Price Multiples
CLS's Enterprise Value to EBITDA is on the same level as the industry average.
CLS's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 73.78 | ||
| EV/EBITDA | 34.8 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of CLS may justify a higher PE ratio.
A more expensive valuation may be justified as CLS's earnings are expected to grow with 26.30% in the coming years.
PEG (NY)1.26
PEG (5Y)1.09
EPS Next 2Y29.94%
EPS Next 3Y26.3%
5. Dividend
5.1 Amount
CLS does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
247.66
-6.73 (-2.65%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners76.87%
Inst Owner Change-2.25%
Ins Owners0.53%
Ins Owner Change0.07%
Market Cap28.49B
Analysts82.5
Price Target162.26 (-34.48%)
Short Float %4.38%
Short Ratio1.4
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)9.18%
Min EPS beat(2)6.65%
Max EPS beat(2)11.71%
EPS beat(4)4
Avg EPS beat(4)7.71%
Min EPS beat(4)1.95%
Max EPS beat(4)11.71%
EPS beat(8)8
Avg EPS beat(8)9.8%
EPS beat(12)12
Avg EPS beat(12)9.35%
EPS beat(16)16
Avg EPS beat(16)9.16%
Revenue beat(2)2
Avg Revenue beat(2)4.95%
Min Revenue beat(2)2.5%
Max Revenue beat(2)7.4%
Revenue beat(4)3
Avg Revenue beat(4)2.89%
Min Revenue beat(4)-0.75%
Max Revenue beat(4)7.4%
Revenue beat(8)7
Avg Revenue beat(8)3.06%
Revenue beat(12)11
Avg Revenue beat(12)3.55%
Revenue beat(16)13
Avg Revenue beat(16)2.92%
PT rev (1m)-3.58%
PT rev (3m)66.63%
EPS NQ rev (1m)0%
EPS NQ rev (3m)16.45%
EPS NY rev (1m)14.43%
EPS NY rev (3m)14.43%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)7.86%
Revenue NY rev (1m)5.11%
Revenue NY rev (3m)5.53%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 52.25 | ||
| Fwd PE | 37.42 | ||
| P/S | 2.69 | ||
| P/FCF | 73.78 | ||
| P/OCF | 51.9 | ||
| P/B | 16.21 | ||
| P/tB | 25.2 | ||
| EV/EBITDA | 34.8 |
EPS(TTM)4.74
EY1.91%
EPS(NY)6.62
Fwd EY2.67%
FCF(TTM)3.36
FCFY1.36%
OCF(TTM)4.77
OCFY1.93%
SpS92.04
BVpS15.28
TBVpS9.83
PEG (NY)1.26
PEG (5Y)1.09
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.63% | ||
| ROE | 30.63% | ||
| ROCE | 23.8% | ||
| ROIC | 19.07% | ||
| ROICexc | 21.37% | ||
| ROICexgc | 28.15% | ||
| OM | 6.56% | ||
| PM (TTM) | 5.09% | ||
| GM | 11.36% | ||
| FCFM | 3.65% |
ROA(3y)4.63%
ROA(5y)3.55%
ROE(3y)15.02%
ROE(5y)11.3%
ROIC(3y)11.43%
ROIC(5y)8.93%
ROICexc(3y)13.32%
ROICexc(5y)10.55%
ROICexgc(3y)18.44%
ROICexgc(5y)14.81%
ROCE(3y)14.26%
ROCE(5y)11.14%
ROICexcg growth 3Y31.4%
ROICexcg growth 5Y28.76%
ROICexc growth 3Y37.65%
ROICexc growth 5Y29.81%
OM growth 3Y24.27%
OM growth 5Y29.03%
PM growth 3Y34%
PM growth 5Y30.13%
GM growth 3Y8.03%
GM growth 5Y10.39%
F-Score7
Asset Turnover1.7
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | 2.27 | ||
| Debt/EBITDA | 0.99 | ||
| Cap/Depr | 100.49% | ||
| Cap/Sales | 1.54% | ||
| Interest Coverage | 17.29 | ||
| Cash Conversion | 64.05% | ||
| Profit Quality | 71.71% | ||
| Current Ratio | 1.44 | ||
| Quick Ratio | 0.86 | ||
| Altman-Z | 6.23 |
F-Score7
WACC8.76%
ROIC/WACC2.18
Cap/Depr(3y)94.48%
Cap/Depr(5y)73.42%
Cap/Sales(3y)1.62%
Cap/Sales(5y)1.34%
Profit Quality(3y)94.3%
Profit Quality(5y)151.44%
High Growth Momentum
Growth
EPS 1Y (TTM)49.06%
EPS 3Y44.1%
EPS 5Y48.11%
EPS Q2Q%52.75%
EPS Next Y41.57%
EPS Next 2Y29.94%
EPS Next 3Y26.3%
EPS Next 5Y30.31%
Revenue 1Y (TTM)20.52%
Revenue growth 3Y19.63%
Revenue growth 5Y10.38%
Sales Q2Q%20.97%
Revenue Next Year19.55%
Revenue Next 2Y18.38%
Revenue Next 3Y18.53%
Revenue Next 5Y18.86%
EBIT growth 1Y40.43%
EBIT growth 3Y48.65%
EBIT growth 5Y42.42%
EBIT Next Year45.93%
EBIT Next 3Y22.4%
EBIT Next 5Y28.45%
FCF growth 1Y59.55%
FCF growth 3Y20.17%
FCF growth 5Y2.76%
OCF growth 1Y45.13%
OCF growth 3Y27.84%
OCF growth 5Y6.55%